4 Reasons to Buy Alibaba Stock After Its Third-Quarter Earnings
Alibaba's (NYSE: BABA) stock dipped slightly after the Chinese tech giant posted its third-quarter earnings on Thursday. Its revenue rose 38% annually to 161.46 billion yuan ($23.19 billion), clearing estimates by 5.5 billion yuan. Its non-GAAP EPS surged 49% to 18.19 yuan per ADS ($2.61), which also beat expectations by 2.49 yuan.
Alibaba's headline numbers looked solid, but its stock dipped after CEO Daniel Zhang warned that the coronavirus outbreak was throttling its e-commerce orders and food deliveries, and that its business segments that sold physical goods would likely post revenue declines during the fourth quarter.
That warning wasn't surprising since the virus (officially known as COVID-19) running rampant across China and parts of Asia hasn't been contained yet. Yet Alibaba's massive business -- which includes China's largest digital advertising, e-commerce, and cloud platforms -- should also weather those near-term challenges. Why? There are four simple reasons investors should still buy Alibaba's stock on its post-earnings pullback.
Source Fool.com
